NOT FOR DISTRIBUTION
Header cover image

Market Cap

AU$8.8b

Last Updated

2021/04/10 08:18 UTC

Data Sources

Company Financials +

Executive Summary

Magellan Financial Group Limited is a publicly owned investment manager. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Magellan Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MFG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MFG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

5.1%

MFG

0.8%

AU Capital Markets

1.5%

AU Market


1 Year Return

-3.8%

MFG

32.7%

AU Capital Markets

35.6%

AU Market

Return vs Industry: MFG underperformed the Australian Capital Markets industry which returned 32.7% over the past year.

Return vs Market: MFG underperformed the Australian Market which returned 35.6% over the past year.


Shareholder returns

MFGIndustryMarket
7 Day5.1%0.8%1.5%
30 Day11.7%2.3%2.6%
90 Day-5.4%3.3%2.5%
1 Year-0.03%-3.8%37.0%32.7%39.8%35.6%
3 Year140.3%111.3%52.6%35.0%35.1%18.7%
5 Year152.3%107.3%115.5%72.9%67.0%34.3%

Long-Term Price Volatility Vs. Market

How volatile is Magellan Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Magellan Financial Group undervalued compared to its fair value and its price relative to the market?

10.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MFG (A$47.98) is trading below our estimate of fair value (A$53.4)

Significantly Below Fair Value: MFG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MFG's PE Ratio (21.8x) is in line with the AU Capital Markets industry average.

PE vs Market: MFG is poor value based on its PE Ratio (21.8x) compared to the Australian market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: MFG is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: MFG is overvalued based on its PB Ratio (8x) compared to the AU Capital Markets industry average (1.3x).


Future Growth

How is Magellan Financial Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFG's forecast earnings growth (16% per year) is above the savings rate (2%).

Earnings vs Market: MFG's earnings (16% per year) are forecast to grow faster than the Australian market (15.4% per year).

High Growth Earnings: MFG's earnings are forecast to grow, but not significantly.

Revenue vs Market: MFG's revenue (8.5% per year) is forecast to grow faster than the Australian market (5.8% per year).

High Growth Revenue: MFG's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MFG's Return on Equity is forecast to be very high in 3 years time (44.4%).


Past Performance

How has Magellan Financial Group performed over the past 5 years?

20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFG has high quality earnings.

Growing Profit Margin: MFG's current net profit margins (60.8%) are higher than last year (56.8%).


Past Earnings Growth Analysis

Earnings Trend: MFG's earnings have grown significantly by 20.3% per year over the past 5 years.

Accelerating Growth: MFG's earnings growth over the past year (0.9%) is below its 5-year average (20.3% per year).

Earnings vs Industry: MFG earnings growth over the past year (0.9%) exceeded the Capital Markets industry -5%.


Return on Equity

High ROE: MFG's Return on Equity (36.7%) is considered high.


Financial Health

How is Magellan Financial Group's financial position?


Financial Position Analysis

Short Term Liabilities: MFG's short term assets (A$440.3M) exceed its short term liabilities (A$33.2M).

Long Term Liabilities: MFG's short term assets (A$440.3M) exceed its long term liabilities (A$24.1M).


Debt to Equity History and Analysis

Debt Level: MFG is debt free.

Reducing Debt: MFG has not had any debt for past 5 years.

Debt Coverage: MFG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MFG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Magellan Financial Group current dividend yield, its reliability and sustainability?

4.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MFG's dividend (4.57%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: MFG's dividend (4.57%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).


Stability and Growth of Payments

Stable Dividend: MFG's dividend payments have been volatile in the past 10 years.

Growing Dividend: MFG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.5%), MFG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MFG's dividends in 3 years are not forecast to be well covered by earnings (96% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Brett Cairns

2.5yrs

Tenure

AU$1,795,102

Compensation

Dr. Brett Peter Cairns, Ph.D., is Chief Executive Officer and Managing Director of Magellan Financial Group Limited since October 5, 2018. Dr. Cairns served as an Executive Chairman of Magellan Financial G...


CEO Compensation Analysis

Compensation vs Market: Brett's total compensation ($USD1.37M) is below average for companies of similar size in the Australian market ($USD2.53M).

Compensation vs Earnings: Brett's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MFG's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: MFG's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MFG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Magellan Financial Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Magellan Financial Group Limited
  • Ticker: MFG
  • Exchange: ASX
  • Founded: 2004
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: AU$8.818b
  • Shares outstanding: 183.79m
  • Website: https://www.magellangroup.com.au

Number of Employees


Location

  • Magellan Financial Group Limited
  • MLC Centre
  • Level 36
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Biography

Magellan Financial Group Limited is a publicly owned investment manager. It invests in global equities and global listed infrastructure markets across the globe. Magellan Financial Group Limited founded in...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/10 08:18
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.